From government-led nutrition initiatives and tariff-driven cost challenges to evolving consumer demand for plant-based options, businesses are under pressure to adapt rapidly.
Nebraska recently became the first state to restrict the use of Supplemental Nutrition Assistance Program (SNAP) benefits for purchasing soda and energy drinks, effective January 2026. The policy, approved by USDA Secretary Brooke Rollins, aims to encourage healthier choices among low-income families, but has sparked debate over potential stigma and administrative hurdles. Other states, including Arkansas, Iowa and Colorado, are considering similar restrictions as the government and industry look to promote nutrition within food assistance programs.
“There’s absolutely zero reason for taxpayers to be subsidizing purchases of soda and energy drinks. SNAP is about helping families in need get healthy food into their diets, but there is nothing nutritious about the junk we are removing with today’s waiver,” Nebraska Gov. Jim Pillen said in a statement May 19.
Yet, industry trade groups resist the waivers, arguing that the consequences of blanketed SNAP restrictions on these products will fall on the grocer and put cashiers in a volatile position with customers.
Read the full story here: USDA approves first state SNAP waiver to ban ‘junk food’ – dozens could follow despite industry warnings of ‘disruptions’ and unintended consequences
Plant-based meat and dairy sales decline and continue facing category headwinds
At the same time, the plant-based meat and dairy markets are experiencing significant declines, with notable drops in sales of refrigerated burgers, sausages and meatballs, per Spins data.
Although some subcategories, like plant-based nuggets and seitan, show modest growth, the overall contraction reflects shifting consumer preferences and ongoing economic pressures. Industry leaders such as Beyond Meat have reported revenue declines, and startups like Meati handed over control to an attorney for an eventual sale of $4 million – a stark drop from its former valuation of $650 million. This market downturn is pushing companies to reconsider product offerings and business strategies to stay relevant in a changing market environment.
Read the full story here: Almost all plant-based meat and dairy categories are down in 2025, Spins reports
Fact Box: FoodNavigator’s Positive Nutrition broadcast series: Plants at the Center of the Plate
Join FoodNavigator on May 28 from 11 am – 12 pm CT for Positive Nutrition’s broadcast on the plant-based category which will start off with an exclusive conversation with Beyond Meat CEO Ethan Brown to discuss how the company is navigating category headwinds and declining consumer perception on plant-based meat. Register here for free.
Following, a panel of industry experts will explore how plant-based can weather the storm and what strategies may drive long-term profitability. The panel will feature insights from:
- Andrew Arentowicz, CEO, 50/50 Foods – offering a blended meat approach that meets flexitarian demand without sacrificing taste or familiarity
- Barbara Connors, VP of Strategy & Acceleration, 84.51 – providing a data-packed view of changing consumer priorities amid economic pressures
- Tara Kozlowich, Director, Global Segment Marketing, Healthful Solutions Protein Fortification, Ingredion – highlighting how texture and nutritional innovation can help plant-based products better meet evolving consumer expectation
Register here for free.
Should retailers ‘eat the cost’ of tariffs?
Meanwhile, tensions over rising costs remain high at the national retail level. Walmart announced plans to potentially raise prices on food and other goods due to increased expenses from new US tariffs. Walmart’s announcement triggered a public rebuke from President Trump, who urged retailers to absorb these costs rather than passing them on to consumers.
This clash highlights the broader challenges food and beverage companies face in balancing tariff-related cost pressures with consumer expectations for affordable pricing, further complicating supply chain and pricing strategies across the industry.
Read the full story here: Fighting words: What does Walmart and Trump’s tussle on tariffs mean for manufacturers and other retailers?
